Deutsche backs Iceland Foods founder’s bid

The founder of the frozen foods chain has lined up backing from Deutsche Bank after rivals closed in to gain a majority stake

The founder of Iceland Foods has beefed up his financial firepower as he fights to stop the frozen food chain falling into the hands of rival Wm Morrison.

Malcolm Walker has lined up backing from Deutsche Bank to help him regain control of the retailer he founded in 1970. He is the second-biggest shareholder with 26%.

Iceland is being sold by creditors to Landsbanki, the failed Icelandic bank that took control of the 750-store chain in 2008. However, Walker’s bid could be blown out of the water by Morrison, Britain’s No 4 supermarket chain.

City sources say Dalton Philips, the chief executive, has set his sights on buying the group as he seeks to close the gap on J Sainsbury and Asda.

Walker’s ambitions are also hampered by a reluctance to meet the price expectations of its current owners. They have slapped a £1.5 billion price tag on Iceland, whereas